In order to reduce greenhouse gas (GHG) emissions from transportation fuels such as gasoline and diesel, the California Low Carbon Fuel Standard (LCFS) policy employs a market-based credit trading system in which providers select how to reduce emissions. A 10% reduction in carbon pollution by 2020 has been set by the LCFS program (interested readers in the performance of LCFS since 2011, please follow this link [ and check tab 1]) . Petroleum importers, refiners, and wholesalers can either produce their own low carbon fuel products or buy LCFS credits from companies that produce and sell lower carbon alternatives in order to comply with the law each year (California Energy Commission). Each LCFS credit represents one metric ton (MT) of carbon dioxide equivalent (CO2e) in GHG reduction. Credits can be sold, banked, or used to help meet a compliance obligation (CARB, a).
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